FG’s economic reforms yet to impact businesses, says NECA
Chairman of the Alliance for Economic Research and Ethics LTD/GTE, Dele Oye, has slammed the Federal Government’s celebration of recent energy sector reforms, noting that while the figures brandished by the government were an illusion, the average Nigerian continues to suffer from expensive fuel, unreliable electricity and rising production costs.
 
Similarly, the Nigeria Employers’ Consultative Association (NECA) says businesses across the country have yet to fully experience the expected benefits of the economic reforms.
 
Oye, who was responding to a 13-page report by the office of the Special Adviser to the President on Energy entitled ‘Nigeria’s Energy Sector Reforms: A Three-Year Review (2023–2026)’, highlighting the progress in Nigeria’s energy sector under President Bola Tinubu, argued that the claims in the report fail to reflect the economic realities faced by households and the productive sector.
 
He pointed to “a sharp deterioration in the financial position of the Nigerian National Petroleum Company Limited (NNPC), noting that its internal debt rose by about 70 per cent to approximately N30.3 trillion.
 
According to him, this level of indebtedness raises serious concerns about efficiency, governance, and the sustainability of ongoing reforms in the energy value chain.
   
“Audited financial statements for NNPCL’s 2024 fiscal year, released early 2026, revealed that intra-company debts among NNPCL’s subsidiaries surged by 70.4 per cent in a single year, from N17.78 trillion in 2023 to N30.3 trillion as of December 31, 2024. The biggest debtors are the state’s own refineries: the Port Harcourt Refining Company (PHRC) owed N4.22 trillion; the Kaduna Refining and Petrochemical Company (KRPC) owed N2.39 trillion; and the Warri Refining and Petrochemical Company (WRPC) owed N2.06 trillion. These are facilities that have absorbed billions of dollars in rehabilitation spending and remain, to this day, largely non-functional.
 
“NNPCL’s trading arm, NNPC Trading SA, owed the parent company N19.15 trillion, more than double the N8.57 trillion recorded the previous year. As Wumi Iledare, Professor Emeritus of Petroleum Economics, observed: ‘A 70 per cent jump in one year is a clear warning sign. It means inefficiencies are growing faster than reforms,’” he stated.
 
Oye also drew attention to the continued dependence of businesses on self-generated power, stating that Nigerian companies spent an estimated N1.83 trillion on diesel within just two months. He said this reflects the persistent failure of the power sector to provide reliable electricity for industrial and commercial use.

Director-General of NECA, Adewale-Smatt Oyerinde, while assessing the administration’s economic performance yesterday in Abuja, acknowledged that the removal of fuel subsidy and the liberalisation of the foreign exchange market reflected the government’s commitment to market-driven economic policies and improved transparency across sectors.
 
He said the reforms enhanced fuel availability, reduced recurring supply disruptions and signalled policy consistency to both local and foreign investors.
 
According to him, while there are indications of improved investor confidence, many domestic businesses, particularly Micro, Small and Medium Enterprises (MSMEs), continue to face operational challenges.
 
The depreciation of the naira, he added, increased production costs, affected competitiveness and heightened operational risks for many businesses.
  
“Many private sector operators have yet to experience the anticipated gains of the reforms as they continue to grapple with inflation, energy costs and exchange rate volatility,” he said.
 
Oyerinde said that declining consumer purchasing power and rising production costs put pressure on businesses, with some firms adjusting investment plans and operations in response to prevailing economic conditions.
  
He advocated support for local production through patronage of made-in-Nigeria goods, infrastructure development and improved security in key business and investment corridors.